According to this article, Rackspace paid $16.5 million for both Jungle Disk, and Slicehost together.
Since I have little expertise or knowledge about Jungle Disk, I am going to factor it out, and focus exclusively on Slicehost.
The article claims that Slicehost has more than 15,000 active slices. Doing some guesses at the math, let’s say on average each slice pays $43 a month, the cost of a 256MB ($20), 512MB ($38), 1024MB ($70) slice combined, divided by three.
That equals $645,000 per month in reoccurring revenue, or $7.7 million per year in gross revenue for Slicehost alone.
If the above numbers are anywhere close to correct, as I suspect they are, it seems like Rackspace got a killer deal.
I have been using Slicehost for my hosting needs for close to six months. I have also referred a handful of my close friends to them as well. Firstly, Slicehost has offered me amazing customer service, exceptional uptime, and flexibility few others offer. They provide full root access to a variety of Linux flavors, my favorites being CentOS and Fedora. Recently they have added much-requested features such as bandwidth pooling, private ip addresses, and a knowledgebase and help article library that rivals anything on the net.
Let me first congratulate Jason, Jared, and the rest of the crew on being acquired by Rackspace. I imagine you guys are out celebrating like rock stars.
Moving forward, I hope Slicehost can continue to provide the personal and extraordinary service and customer support previously offered. Rackspace is a solid company, and I hope they realize, what aint broke, don’t need fixing.
Official Slicehost Announcement
http://www.slicehost.com/articles/2008/10/22/big-news-today
The Slicehost & Rackspace FAQ
http://www.slicehost.com/rackspace
